Correction or Continuation? An Ichimoku Cloud Analysis of the Crypto Top 10
The cryptocurrency market is currently undergoing a widespread short-term correction following a period of bullish momentum. Major assets like Bitcoin and Ethereum, along with most leading altcoins, are pulling back to test critical support levels that will likely determine the next directional move. While the broader bullish structure remains intact for many of these assets, others are showing signs of weakness or are range-bound in consolidation, indicating a period of market-wide indecision.
1. Bitcoin (BTC/USD)
Bitcoin is currently in a corrective phase after a recent upward impulse.
The price, currently at $118,382, has pulled back towards the Kumo cloud, which is now acting as a key support zone around $118,000. While the long-term trend remains bullish with the price above the green cloud and the Chikou Span (Lagging Span) above past price action, short-term momentum has turned bearish. This is indicated by the price trading below the Tenkan-sen (Conversion Line) and Kijun-sen (Base Line at $120,859), with a recent bearish cross of these lines. The market is at a decision point; if the cloud provides sufficient support, a continuation of the uptrend is possible. However, a break into or below the cloud would signal a deeper correction.
2. Ethereum (ETH/USD)
Ethereum displays a strong bullish structure, trading significantly above a thick, green Kumo cloud at a current price of $4,557.10.
This indicates a robust and sustained uptrend. The recent price action shows a minor pullback from its peak, a common characteristic of a healthy trend. Although the price has dipped slightly below the Tenkan-sen, suggesting a pause in the immediate upward momentum, the overall outlook remains positive. The Chikou Span is well above the price of 26 periods ago, and the future cloud is bullish, confirming the strength of the current trend. The Kijun-sen, at $4,478.93, is expected to act as the first significant level of dynamic support.
3. Binance Coin (BNB/USD)
BNB is experiencing a short-term bearish correction within a broader bullish context.
The price, now at $839.8, has fallen from its recent highs and is now trading below both the Tenkan-sen and Kijun-sen (at $845.4), with a bearish cross having occurred, signaling downward momentum. The price is currently approaching the top of the Kumo cloud, around $814.0, which serves as a critical support level. The Chikou Span remains above the past price, and the future cloud is green, suggesting the underlying long-term trend is still intact. A successful hold above the cloud could lead to a recovery, while a break below it would increase the risk of a more significant downturn.
4. Solana (SOL/USD)
Solana is undergoing a significant pullback after being rejected from its recent highs.
The price, at $192.78, has broken below the Tenkan-sen and Kijun-sen, and a bearish cross confirms the short-term downward pressure. It is now testing the top of the Kumo cloud at approximately $191.71 as a critical support level. However, the future cloud is thin, suggesting that this support may be weak. The Chikou Span, while still above the past price, is trending downwards. A definitive break below this cloud could signal a shift in the intermediate-term trend from bullish to bearish.
5. XRP (XRP/USD)
XRP is in a state of consolidation, showing no clear directional trend.
The price is currently $3.08473 and trading directly within the Ichimoku cloud (between roughly $3.05 and $3.15), which represents an area of equilibrium and indecision. The Tenkan-sen and Kijun-sen are flat and intertwined, further highlighting the lack of momentum. Similarly, the Chikou Span is moving sideways within the candles of 26 periods ago, confirming the range-bound market. A sustained breakout either above the cloud (bullish) or below it (bearish) is required to establish the next directional move.
6. Dogecoin (DOGE/USD)
Dogecoin’s recent price action indicates a decisive shift to a bearish trend.
After a sharp decline from its recent peak, the price of $0.22409 has broken below all key Ichimoku indicators: the Tenkan-sen, the Kijun-sen, and, most importantly, the Kumo cloud. The Chikou Span has also crossed below the price action of 26 periods ago, and the future cloud is red, both confirming the bearish outlook. The previous support of the cloud, around $0.227, is now likely to act as resistance on any potential upward bounces.
7. Toncoin (TON/USD)
Toncoin is currently in a neutral consolidation phase, with its price of $3.4368 trading inside the Kumo cloud.
This signifies market indecision and a lack of a clear trend. The Tenkan-sen and Kijun-sen are flat and positioned close together, reinforcing the sideways momentum. The Chikou Span is also entangled with the past price action, which is typical for a ranging market. The future cloud is green but thin, suggesting a slight bullish potential but lacking strong conviction. A breakout above the cloud resistance at ~$3.475 or below the cloud support at ~$3.39 is needed to signal the next likely direction.
8. Cardano (ADA/USD)
Cardano is in a strong bullish trend, having recently experienced a significant upward surge.
The price, currently $0.9138, is in a natural corrective phase after hitting a new high, but it remains well above the green and expanding Kumo cloud. This indicates the underlying trend is firmly bullish. A short-term bearish cross of the Tenkan-sen below the Kijun-sen has occurred, signaling this pullback. However, with the Chikou Span far above the past price, the bullish momentum is confirmed. The Kijun-sen at $0.8932 and the top of the cloud are expected to provide strong support for a potential continuation of the uptrend.
9. Avalanche (AVAX/USD)
Avalanche is currently at a crucial juncture as its short-term bearish momentum challenges the longer-term bullish structure.
Following a rejection from resistance, the price has dropped to $23.78, below the Tenkan-sen and Kijun-sen, and is now testing the top of the Kumo cloud at ~$23.50 for support. The bearish cross of the conversion and base lines indicates immediate downward pressure. While the future cloud remains green, suggesting a bullish bias is still possible, a price drop into the cloud would weaken this outlook and could lead to a period of consolidation or a deeper correction.
10. Chainlink (LINK/USD)
Chainlink remains in a solid long-term uptrend but is currently undergoing a short-term correction.
The price, at $22.379, is trading well above a thick, green Kumo cloud, which points to strong underlying bullish sentiment. However, the recent pullback has taken the price below the Tenkan-sen and Kijun-sen, with a bearish cross indicating a pause in the rally. The Chikou Span is still positioned above the past price, which is a bullish confirmation. The price appears to be heading towards the Kijun-sen at $22.854, which will likely serve as the first line of defense for the bulls.
